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Jun 23, 2019 19:38:06

Interrogating categories of "fixed" business costs

by @rosieodsey PATRON | 410 words | 🐣 | 221💌

Rosie Odsey

Current day streak: 0🐣
Total posts: 221💌
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In the past few days, I've been able to reduce my monthly costs by $372.64. I've grouped similar costs and I'm interrogating them as totals. Today, I'm looking at my business fixed costs. This doesn't include any discretionary spending or variable costs.

Feel free to do a cross-examination.

(Note: All in AUD. Take off about a third for USD. A lot of stuff is way more expensive here but also our health care is pretty covered and we have minimum wage. The point is to avoid direct comparison.)

Business fixed costs $1154.17 monthly

The costs of community and professional development $380.54 monthly

  • Freelance Jungle $30 monthly
  • Fishburners Virtual Coworking $53.90 monthly
  • The Right Company $80.00 monthly
  • The Clever Copywriting Community $53.90 monthly
  • Work Gym $203.21 quarterly
  • Freelancer Secrets $75.00 monthly
  • Mindhive $20.00 monthly

This is about a third of my fixed business costs. I am comfortable with each individual cost but the total makes me feel uncomfortable.

I'm setting aside time to think about each of them in depth. Specifically: What do I want to get out of this community?

I know this for some but I'd like to make it explicit. Without knowing this, I don't know whether or not it is filling that need or whether that need is worth the price. I'll do this when I do the thinking around the personal development items from yesterday.

I know, it's a lot of development. And I think going all in on a few is better than dabbling in many. If the above exercise doesn't cut it down enough, I'll just have to prioritise: what people do I need to be surrounding myself right now?

The costs of running the business $371.51 monthly

  • Desk rent $225 monthly
  • Mobile Phone $45.50 monthly (50% business expense)
  • Squirrel Street $37.95 monthly
  • Business Insurance $22.12 monthly
  • GSuite $16.26 monthly
  • Dropbox $15.39 monthly
  • Notion $7.50 monthly
  • Bear $21.49 annually

This is about a third of my fixed business costs. I am comfortable with these costs.

The costs of winning income $266.33 monthly

  • Clickfunnels $140.00 monthly
  • 17hats $70.00 monthly
  • ConvertKit $45.00 monthly
  • Domains ~$76 annually
  • Wordpress $60.00 annually

This is about 23% of my fixed business costs. I am comfortable with these costs. I would like to make enough passive income to cover this. That's the next side project.

The costs of doing the work $116.09 monthly

  • Basecamp $70.00 monthly
  • Canva $14.10 monthly
  • Microsoft $10.00 monthly
  • Creative Cloud $21.99 monthly

This is about 10% of my fixed business costs. I am comfortable with these costs. In the next few months, I will probably try to switch to open office instead of Microsoft but that's not for cost reduction.

From Rosie Odsey's collection:

  • 1

    @rosieodsey Thank you for busting open the books and giving us this incredibly detailed look at your business costs.

    Brandon Wilson avatar Brandon Wilson | Jun 23, 2019 13:51:53
    • 1

      @brandonwilson You're welcome!

      Rosie Odsey avatar Rosie Odsey | Jun 24, 2019 07:34:11
  • 1

    @rosieodsey Thanks for being so transparent about this. It's really insightful which tools another freelancer uses.

    Julia Saxena avatar Julia Saxena | Jun 23, 2019 06:48:50
    • 1

      @juliasaxena You're welcome! I'm glad that writing it like this is valuable for other people too! For what it's worth, I don't know that I'm typical - I could run this way more lean! If you love transparency and you haven't already, check out Indie Hackers. They're more around products than freelancers but many have opted for full financial transparency (https://www.indiehackers.com/products) and you might find it fun to dig into tools and such. I did :D

      Rosie Odsey avatar Rosie Odsey | Jun 24, 2019 07:33:58
    • 1

      @rosieodsey Oh, I didn't know about this site yet. Thanks. I'll check it out.

      Julia Saxena avatar Julia Saxena | Jun 24, 2019 07:22:04
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